Cryptocurrency News

Inner Mongolia of China is to shut down Crypto Mining Farms

As per the latest reports, the Chinese authorities of Inner Mongolia have made proposal in regards to the crypto-mining farms. The proposal has been made particularly about the farms that are located in the Inner Mongolia’s autonomous region.

The authorities of this region has proposed to shut down the cryptocurrency mining farms that are currently operating in this region. In the proposal, the authorities have claimed that doing so will greatly reduce the amount of energy that is currently being consumed in this region.

It was National Development and Reform Commission (NDRC) of the Inner Mongolian region that has made the proposal. The official reports around the matter have revealed that the authority has proposed to shut down the cryptocurrency mining farms.

The authority has claimed that shutting down the operations of cryptocurrency mining in the region would greatly reduce the energy consumption rate that the region is having a hard time controlling.

However, the National Development and Reform Commission (NDRC) has confirmed that the shutting down of the farms will be carried out according to the energy-saving rules and regulations.

According to the sources, the draft proposal was published by NDRC last week on Thursday, March 25, 2021. The proposal suggests that the cryptocurrency mining firms and data centers should be cleaned up comprehensibly. The proposal stated that if the proposal for the shutdown of mining centers is confirmed then the process will be completed by the end of April 2021.

The proposal also stated that following the shutdown of the cryptocurrency mining firms, no further cryptocurrency firms must be allowed to operate any crypto-mining projects in the region.

At the time of the publication of the draft proposal, NDRC stated the draft will be available for public viewing until Wednesday, March 31, 2021. Until then, the public can go through the draft proposal and make any comments about it, as well as share their feedback.

According to one of the reporting firms “Reuters”, Inner Mongolia has been facing constant pressure from the Chinese government for not being able to meet the energy consumption charges.

The stats show that back in 2019, Inner Mongolia was the only region out of 30 mainland areas that failed to meet the target for energy-saving. This information was collected by Reuters through the energy consumption and energy intensity review conducted by Beijing.

It has been revealed that Inner Mongolia region is now aiming to keep its maximum growth of energy’s consumption to about 5 million tons. The proposal draft shows that it is planning to hit this target by the end of 2021.

The major reason why Inner Mongolia became one of the hubs for cryptocurrency mining activities was its low prices it offered for electricity consumption. Despite the region making a lot of name in terms of crypto-mining, yet it has been plagued with missing out on his energy-saving targets in the recent years.

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